No matter what position we are in, middle or the senior management, opportunities are like hidden gems waiting to be discovered. Effectively leveraging them can propel our projects toward success.
If so, What are the Five Opportunities can be considered for your strategic responses while handling projects? or Opportunity Risk!
According to the Project Management Body of Knowledge (PMBOK) , an opportunity is defined as a risk that would have a positive effect on one or more project objectives.
Navigating these opportunities with a well-crafted strategy is critical for any project’s success. Let’s explore the five alternative strategies outlined in the PMBOK 7th edition for dealing with opportunities.
Five Opportunity Risk
1. Exploit
Exploiting an opportunity is a proactive strategy that involves taking deliberate actions to ensure the opportunity occurs.
This strategy demands meticulous planning and execution to maximize the benefits that arise from the opportunity.
For instance, in a construction project, if a supplier offers a substantial discount for a limited period, the project team might expedite material procurement to exploit this cost-saving opportunity effectively.
2. Escalate
Similar to its use in threat management, escalation as an opportunity response strategy is employed when the opportunity falls beyond the project scope or exceeds the project manager’s authority.
In such cases, seeking approval from higher authorities or stakeholders becomes necessary to grasp the opportunity effectively.
This approach ensures that no opportunity is missed due to administrative limitations or hierarchical boundaries.
3. Share
Opportunity sharing involves the allocation of ownership of an opportunity to a third party that can best capture its benefits.
This strategy is particularly beneficial when the project team lacks the expertise or resources to fully capitalize on an opportunity.
Collaborating with external entities, such as specialized contractors or vendors, allows the project to leverage their proficiency and capabilities to harness the full potential of the opportunity.
4. Enhance
Enhancing an opportunity requires the project team to actively work on increasing the probability of its occurrence or impact.
Early intervention and proactive measures play a crucial role in enhancing opportunities.
For instance, in an information technology project, if an advanced software upgrade promises improved efficiency, the project team might invest in comprehensive training programs for the staff to ensure the technology is fully optimized.
5. Accept
Acceptance of an opportunity acknowledges its presence without actively pursuing any specific actions.
This strategy is adopted when the benefits of the opportunity are deemed sufficient without additional interventions.
While it may seem passive, accepting an opportunity can be a practical approach when resources are limited, and the project’s focus needs to remain on essential aspects without diversions.
Finally, The Review Process and Residual Risk
After formulating a set of responses to address opportunities, a comprehensive review process becomes crucial.
This evaluation should assess whether the planned responses have inadvertently introduced any secondary risks and determine the residual risk that remains even after implementing the response actions. (Residual Risk is the risk that remains after efforts to identify and eliminate some or all types of risk have been made. example: Seat belts)
Iterative response planning is essential until the residual risk aligns with the organization’s risk appetite, ensuring a balanced and proactive approach to opportunity management.
Conclusion
Navigating the realm of opportunities in project management requires a strategic mindset and a comprehensive understanding of the diverse response strategies outlined in the PMBOK 7th edition.
By adeptly employing these strategies, project managers can effectively harness the potential of opportunities, fostering success and growth in every project endeavor.
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